Finding the right construction bookkeeping services to keep your business’s finances accurate and on track is crucial to ensuring your business’s long-term success and profitability.
But, if you’re like most companies in the construction industry, hiring a full-time professional bookkeeping team or someone with construction industry experience is easier said than done.
Local Bookkeeping and Accounting Services For Construction Companies
When you work with Quantify, our accounting team becomes your accounting team. We work closely with construction companies to make sure using smart financial management based on accurate bookkeeping.
Let’s walk through the benefits of hiring outside bookkeeping services for your construction company.
Benefits of Construction Bookkeeping Services and Accounting
If you’re on the fence about hiring or outsourcing bookkeeping services, you should first understand the benefits you’ll get when hiring a dedicated team.
Pursue More Profitable Projects With Insightful Financial Reporting
Hiring a construction bookkeeping and accounting service not only provides accurate and valuable financial reporting — it allows you to understand your construction company’s bottom line and make the right decisions.
For example, financial reporting can help construction companies identify which projects generate the most direct and indirect costs and profit and how to avoid costly construction projects.
Contract value and duration
In the construction industry, having accurate tracking of contract values and durations is essential to track how much money a contract generates. Hiring a third-party bookkeeping and accounting service can help businesses manage all these costs effectively, ensuring they clearly understand their contractual obligations and timelines.
Understanding contract management for your company is crucial for profitability and long-term success, as it helps businesses avoid costly overruns and maintain positive client relationships.
Solutions Tailored to Your Construction Business
Not all bookkeeping and accounting services are created equal. Choosing a provider that understands the unique needs of construction businesses and can offer customized solutions is essential.
With our tailored construction bookkeeping services, we can help businesses manage construction job costs well, streamline project costs, and confirm accurate financial statements are contributing to the profitability and success of the construction business.
Use job costing to manage project costs and general business ledgers
Job costing is a critical aspect of construction bookkeeping and accounting. It involves tracking and allocating costs to specific projects, allowing businesses to monitor their expenses and identify areas for improvement
By using job costing, your construction company can track project and labor costs accurately, ensuring that they stay within budget and make data-driven decisions to increase profitability.
Why construction businesses need a bookkeeper with industry experience
The construction industry has its own unique business expenses and complexities. That’s why you need to work with a knowledgeable bookkeeper with a background in construction who can better understand the nuances of job costing, contract management, and revenue recognition methods specific to the industry.
They can also help navigate fluctuating expenses, materials costs, and labor management. By having a bookkeeper with industry experience, many construction companies and businesses can ensure accurate financial records, make informed decisions, and, ultimately, maintain a competitive edge in the ever-evolving construction landscape.
Bookkeeping Professionals for Small Construction Businesses
Pay for Bookkeeping Services Monthly
Outsourcing your construction company’s bookkeeping needs to a professional service can save you time and effort. By paying for these services every month, you can save money in the long run without having to hire a full-time team and not sacrificing accurate construction bookkeeping.
This allows you to focus on your core, strategic business operations while keeping peace of mind that your financial data is in good hands.
Plus, monthly bookkeeping services can help you detect any financial discrepancies or issues early on, allowing you to address them promptly and avoid potential complications.
Hire an accountant
Hiring accounting services to manage your construction accounting can help you with so much, including financial planning, tax preparation, and give expert advice to your financial questions.
By working closely with an accountant, you can ensure that your construction company makes informed financial decisions, becomes as profitable as possible, and stays compliant with tax laws and regulations.
Choose the right revenue recognition method
In the construction industry, choosing the right revenue recognition method for your team is really the foundation for all of your financial reporting.
Whether you’re using the percentage-of-completion or completed-contract method, the right method for your business depends on factors like the size and duration of your projects and your company’s specific accounting policies.
At Quantify, we can help determine the best revenue recognition method for your construction accounting, ensuring that your financial statements accurately reflect your business’s performance.
Record all details about payments and invoices
Keeping complete records of all payments and invoices is crucial for effective bookkeeping in the construction industry. This includes recording each transaction’s date, amount, and description and any relevant supporting documentation.
By keeping detailed records, you can easily track your company’s cash flow, monitor outstanding accounts payable invoices, and ensure that all transactions are accurately accounted for.
Additionally, well-organized records can help you identify discrepancies or potential issues, allowing you to promptly address them.
How our unique approach to construction bookkeeping benefits your business
When you work with Quantify accounting, our main goal is to help you get your construction business to reach peak profitability by using your company’s financial data to make the right decisions.
Our bookkeeping solutions are designed to fit your team’s specific needs. Whether you are looking to help your existing accounting department become more efficient or are looking to use our financial recordkeeping solely, we have the formulas and frameworks to take your business to its next level of profitability.
We work directly with small business owners who are looking to fix inaccurate financial reporting and take their construction bookkeeping services to the next level.
If you want to discover the Quantify difference, contact us today to get started. We’ll sit down to understand your needs and how we can help you grow your most valuable asset — your business.